Collateralized Bond Obligation - CBO

核心提示：An investment-grade bond backed by a pool of junk bonds. Junk bonds are typically not investment grade, but because they pool several types of credit quality bonds together, they offer enough diversification to be "investment grade." |||Similar

An investment-grade bond backed by a pool of junk bonds. Junk bonds are typically not investment grade, but because they pool several types of credit quality bonds together, they offer enough diversification to be "investment grade."

|||Similar in structure to a collateralized mortgage obligation , but different in that CBOs represent different levels of credit risk, not different maturities.